All Forum Posts by: Mark Updegraff

Welcome to the community! You’re in the right place, and it’s great to see your enthusiasm about getting started in real estate investing. I’ve been in this business a long time, and I know firsthand how overwhelming that first deal can feel—especially when it comes to financing. But the good news is, you don’t need to have all the answers right away. You just need the right plan and the right people in your corner.

A little background on me—I’m a real estate broker, investor, and developer out of Rochester, NY. I built my business from the ground up, and over the years, I’ve worked with first-time investors, seasoned pros, and everyone in between. I specialize in investment properties, high-end homes, and commercial real estate, and I run Updegraff Group Realty, a full-service brokerage that helps investors not only find and fund deals but also manage construction, optimize returns, and scale their portfolios.

Financing Your First Deal Without Using Your Own Money

It’s a common question, and the truth is—it’s very doable, but it requires strategy and relationships. Here’s a breakdown of the main ways investors fund their first deal while minimizing their own cash outlay:

1. Private Money & Hard Money Loans– These lenders focus more on the deal than on your personal finances. If you can show that the numbers work, you can get 100% of the purchase and rehab covered.The key is finding lenders who work with new investors.

2. Partnering with Experienced Investors– If you don’t have capital, you can offer your time, effort, and hustle in exchange for a piece of the deal. Many experienced investors are willing to partner if you find the right property and do the legwork.

3. Seller Financing & Creative Deals– Some sellers will carry the note, allowing you to buy with little or no money down. This works best when the seller is motivated and open to flexible terms.

4. BRRRR Strategy (Buy, Rehab, Rent, Refinance, Repeat)– If you find the right undervalued property, you can finance the rehab with short-term funding and then refinance into a long-term loan, pulling most or all of your money back out.

5. House Hacking– If you’re open to living in your investment, you can use an FHA loan (as low as 3.5% down)to buy a multi-unit, live in one unit, and rent out the others. This gets you in the game with minimal upfront costs.

Covering the Smaller Costs (Inspections, Appraisals, Earnest Money, etc.)

Even when using other people’s money, you’ll need some cash for earnest money deposits, inspections, and carrying costs. Here’s how to handle those:

• Negotiate inspection costs into your deal—in some cases, sellers will cover them.

• Work with lenders that roll fees into closing costs(some hard money lenders do this).

• Use business credit or 0% interest credit cards strategically—just be careful with repayment timelines.

Next Steps

The biggest thing you can do right now is surround yourself with experienced investors, agents, and lenders who have done what you’re trying to do. The fact that you’re here shows that you’re serious about learning and growing, and that’s half the battle.

If you’re looking for real, practical guidance, I’m happy to help. I know what it’s like to be in your position, and I believe in paying it forward. If you want to talk strategy, analyze deals, or just get some honest insight, feel free to reach out. Looking forward to seeing you take that first step and get your first deal done!

Sounds like you’re expecting an agent to do all the heavy lifting, and that’s not how this business works. A good investor-agent is worth their weight in gold because of market expertise, connections, and knowing how to get deals done, not because they’re your personal deal-finder.

The best deals don’t come from sitting back and waiting for an agent to serve them up to you. Investing is your responsibility. Your agent’s role is to support your strategy, provide insight on the market, and help you execute—but you need to be out there networking, analyzing, and sourcing opportunities yourself.

A solid investor-friendly agent will:

• Read between the lines on listings to spot motivation and negotiating angles.

• Understand market trends and what’s actually selling vs. what’s sitting.

• Have relationships with other pros—lenders, attorneys, wholesalers, contractors—so deals don’t fall apart.

But if you expect an agent to hunt down every deal for you while you just sit and wait, you’re going to keep being frustrated. The best investor-agent relationships are partnerships, not one-sided services.If you’re serious about scaling, get proactive—bring leads to your agent, analyze deals, and be ready to move when the right opportunity hits.

If agents in your area aren’t working out, it might be time to look at your approach instead of blaming them all for being lazy. The best investor-friendly agents are busy because they know what they’re doing. You need to prove that you’re a serious buyer, ready to act, and that working with you is worth their time.

You’re off to a great start—most first-time flippers don’t take the time to plan like this, and it’s smart that you’ve got a real estate attorney, CPA, and a plan for vetting contractors. That’s exactly how you should approach it. With $80K saved and no debt, you’ve got a solid foundation to make this work.

That said, I have to ask—why the Midwest? I get that Florida is expensive, but flipping out of state for your first deal is a tough way to start. If you haven’t already, you should take a hard look at Rochester, NY before committing to another market.

The inventory here is crazy low, and demand is through the roof. Houses in the suburbs are regularly selling $100K–$200K over asking, and we use delayed negotiations to drive up prices. Flippers here are seeing insane ROIs, and unlike some Midwest markets where appreciation is slow, Rochester homes actually move.

You’re obviously being smart about making sure the numbers work, and that’s exactly why this market should be on your radar.

I run Updegraff Group Realty, and we specialize in helping investors maximize returns in this market. This isn’t theory—we do this every day.

Vetted contractors—no chasing down unreliable guys or getting ripped off. We already have top-tier crews who get the job done right.

Reliable construction costs and timelines—you mentioned trying to avoid deposits, but I’ll be real with you, good contractors won’t start without one. We charge 50% upfront because that’s how you lock in quality work without delays.

Off-market deals and investment analysis—I know exactly where to buy, what to renovate, and how to sell for the highest price. The numbers don’t lie, and I can walk you through actual case studies to show how flips perform here.

If you’re set on the Midwest, I get it. But if you’re open to looking at a stronger, more predictable market with way bigger upside, Rochester should be on your list. Either way, happy to share insights that can help you make the smartest move.

You’re in a strong position with multiple viable options. Considering recent market insights, reallocating your $300K brokerage account into a multifamily property while keeping your townhouse rented could be advantageous.

Warren Buffett’s Berkshire Hathaway has accumulated a record amount of cash, suggesting a cautious stance due to potential market overvaluation. If one of the greatest investors of all time believes stocks are overvalued, this may be an opportune time to shed some risk and move into a more tangible asset like real estate.

The Rochester housing market is a great place to consider for investment. It has seen steady appreciation, and multifamily properties can provide strong cash flow. The market is somewhat competitive, with homes receiving multiple offers and selling quickly, but there are still good opportunities with strong cap rates and value-add potential.

Advantages of investing in a Rochester multifamily property:

1. Leverage & Portfolio Growth

Investing in a solid multi-unit property allows you to leverage your capital into an appreciating asset that generates cash flow. Keeping your current townhouse rented enables tenants to continue paying down the mortgage while you scale.

2. Cash Flow & Value-Add Potential

A well-selected multifamily property could outperform the $2,400/month cash flow you’d get from paying off the townhouse, especially if you find a property with under-market rents or appreciation potential. Diversification into multifamily also lowers risk compared to a single rental, as vacancies won’t affect your income as drastically.

3. Tax Strategy

While liquidating the brokerage account may trigger capital gains taxes, strategies like staggered withdrawals or tax-loss harvesting can help minimize the impact. Additionally, depreciation deductions on the multifamily property could offset a portion of your rental income, further enhancing returns.

Key considerations:

- Financing the multifamily: Would you go all-cash or use financing? Using leverage (e.g., 25% down) lets you maximize growth.

- Cash flow vs. appreciation: If the new property is in a market with strong rent growth, you'll benefit from increasing NOI over time.

- Stock market opportunity cost: If the brokerage account has strong holdings, consider if the return potential justifies cashing out now.

Given the current market dynamics and your goals, reallocating your brokerage funds into a multifamily property in Rochester could provide substantial benefits. It’s advisable to consult with a real estate-savvy CPA or tax strategist to explore ways to mitigate capital gains taxes before proceeding.

If you’re interested in exploring multifamily investment opportunities in Rochester, I’d be happy to discuss options and provide insights.

Alright, BP fam, let me break this down for you. Industrial real estate in Rochester, NY is hotter than ever. I’m working with local investors who are snapping up everything they can get their hands on, and honestly, I can’t blame them. Here’s why this market is so ripe:

1️⃣ Mom-and-Pop Sell-Offs at Huge Discounts
A lot of these properties have been in the same family for decades, but now the kids aren’t interested in taking over the business or the real estate. It’s creating incredible opportunities for investors to step in, often at steep discounts.

2️⃣ Off-Market Deals Are King
Most of the industrial deals I find never hit the open market. As a top bird dog in the area, I’m connecting buyers directly to end users, bypassing the traditional marketing process altogether. That means if you’re not working with me, you’re probably not even hearing about these opportunities.

3️⃣ E-Commerce and Supply Chains Are Driving Demand
We all know e-commerce is reshaping the game, and Rochester’s location gives it an edge. Easy access to NYC, Boston, and Toronto makes this region a logistics dream. Add in affordable space and a skilled workforce, and you’ve got a recipe for success.

4️⃣ Learning from My Clients
I’m watching my clients crush it with their industrial investments, and it’s inspiring me to grow my own portfolio. Seeing their success is a powerful motivator—and it’s giving me unique insights into what’s working (and what’s not) in this field.

If you’re sleeping on industrial real estate in smaller markets like Rochester, you’re missing out. The numbers don’t lie, and the opportunities are everywhere—if you know where to look.

💬 Let’s hear it:

• Are you seeing these same trends in your market?
• How do you approach finding off-market deals?
• Have you explored industrial properties, or is this still new territory for you?

Let’s talk shop! 🚀

Rochester NY has a plethora of options under 250k.  I helped an investor get into a 3 bed 2 bath , 3 bed 2 bath duplex for 105k - each side is leased for 1250.  Newer architectural roof, vinyl siding, and newer hvac.  Tenant pays all utils except water.  Talk about CASH FLOW!!  

It depends on who you're hiring but that seems fairly standard.  In our market it is important to make sure they are a licensed broker, carry adequate GL and worker's comp (and name you as additional insured).  There are a lot of fly by night outfits up here unfortunately.  

Hi Mo! 

I'm waaaaay upstate in Rochester NY but downstate has always fascinated me.  I'm looking forward to following you here on Bigger Pockets and learning more!  I do have a friend in Manhattan who is just getting started in RE.  I'll see if he is interseted in attending.  Hopefully next time I make it to the big apple you'll be hosting one!  

Sincerely, Mark Updegraff 

 Well said @Russell Brazil - Our preferred attorney will be meeting with my agents here in Upstate NY to review new protocol in light of the recent lawsuits.  I've never required someone to sign an agency agreement in over a decade of doing this.  I've been burned a couple times early on, but the type of personality that operates with no consideration of anyone else but themselves is easy to spot with a little experience.  Now they're the ones I politely decline to work with.  If you're someone that brings value to to the table, it should be a no brainer for loyalty given you're working with a decent human.  It will be interesting to see how the consumer reacts when these documents start getting shoved down their throats.  Indeed it will be bad news for the consumer as a lot will get locked in with inexperienced / part time agents who never make the cut.  In my market, this can easily lead to increased home prices, closed transactions that had no inspection where there are a lot of issues that could have been identified by an experienced agent, and a bad taste in the consumer's mouth.  Co-op broker fees have been diminishing over the last few years, and I think it will accelerate.  Discount brokers a keeping the meat on the listing side and shorting the selling side.  Most buyer's can't afford to pay the differnce and selling agents desperate for a deal don't seem to mind.  We're going to see a huge shake out of agents over the next few years IMO.   

I’m out of town this week but happy to give you my insight when I return.  I’ll send you a pm w my cell - text me and we can schedule a time to discuss.

Sincerely, Mark Updegraff